The 20 Best Online Payment Systems

An online payment system is the lifeblood of any website that sells a product or a service. There are numerous solutions on the market, so choosing is not an easy task. In order to simplify that selection, we’ve compiled a list with what we believe to be the 20 best payment systems on the market today.

Authorize.Net is the most used payment gateway on the Internet, and its client base consists of more than 300,000 online merchants. This is one of the go-to e-commerce solutions, and many e-commerce platforms, such as Magenta and X-Cart, integrate it. Authorize.Net charges a $99 setup fee, a $10 monthly fee, and a $0.25 fee per transaction.

PayPal is the most recognized of all online payment systems, and that recognition breeds a great deal of confidence in the consumer. PayPal processed more than $4 billion in payments last year alone. It also boasts a wide array of consumer-friendly features, some of which are unique to PayPal. The service has not setup or monthly fee, and it charges 2.9 percent plus $0.30 per transaction.

Google Checkout was Google’s alternative to PayPal. Checkout didn't have the cachet PayPal does as a payment processor, but Google overcame that through the popularity of its core brand. Checkout emulates PayPal, and its main advantage was its integration with many other popular Google services. Checkout used to charge 2.9 percent plus $0.30 per transaction, but that price dropped as volume rises. Google Checkout was discontinued on November 20th, 2013.

Amazon is one of the biggest names in e-commerce. Amazon Payments is its powerful, proprietary checkout system, but it is also available to other merchants via its API. The standard fee of Amazon Payments is 2.9 percent plus $0.30 per transaction, but it charges more for transactions less than $10 and less for volumes above $3K per month.

Dwolla is one of the newest and most successful of the direct competitors to PayPal. Name recognition is still low, but it is processing $1 million plus per day, and it has most PayPal features. Dwolla charges nothing for transactions less than $10, and for all other transactions, it charges $0.25 per.

SecureNetShop is a diverse online payment solution that is a particularly strong option for small to mid-sized websites. It even has a website builder in addition to a full-featured shopping cart. SecureNetShop charges a $20 per month gateway fee, an avoidable $10 per month statement fee, and a 2.18 percent plus $0.25 per transaction.

8. Go Daddy

Note that you do not require Go Daddy hosting or any other service in order to have a merchant account with them. Go Daddy has a superb service that is a little expensive up front but is quite cost-effective in the long term. The charge is a $59.99 application and setup fee, a $15 monthly fee, and 2.1 percent plus $0.20 per transaction.

Moneybookers, which is transitioning to the Skrill rebranding, is a European-based counterpart to PayPal. For the online merchant, Skrill delivers a full-featured e-commerce solution. It charges 3.9 percent plus €0.35 per transaction. Note that fees decrease as volume increases, and fees are smaller across the board for European-based merchants. If the merchant requires gateway usage, there is an additional €19.95 monthly charge.

The Stripe service has one of the most robust APIs on the market, which makes it particularly appealing to web developers that need to accomplish a lot of custom work. Use of the software and service are free, and Stripe charges 2.9 percent plus $0.30 per transaction.

Braintree is a comprehensive payment processing solution that quickly made a name for itself through its association with popular tech startups, such as LivingSocial and Airbnb. Braintree is powerful and sophisticated but a touch on the expensive side: It charges a $99 setup fee, a $35 monthly fee with a $75 imposed minimum, and 2.29 percent plus $0.30 per transaction.

12. Samurai

FeeFighters is a service that helps online merchants by comparing merchant account fees. Samurai is a payment processing solution that sprang from that effort. Developed as a direct competitor to Braintree, Samurai by FeeFighters charges $25 per month and 2.9 percent and $0.30 per transaction.

WePay is a payment processor that caters to the individual user. The service even has e-store pages, which are automated and customizable, that make it easy for newbies to accept payments. WePay is an excellent short-term option and a strong option for technology-challenged small businesses. For bank payments, WePay charges $0.50 per transaction. For credit cards, it charges 3.5 percent per transaction with a $0.50 minimum charge.

The 2Checkout service is both a merchant account and a payment gateway, which means that the merchant can accept PayPal and similar payments as well as credit cards and other traditional options. This service costs $5.99 per month and 3.99 percent plus $0.45 per transaction.

ProPay is a PayPal-like service that serves both consumers and merchants. For merchants, it is a robust system for sending and receiving funds. It boasts a number of excellent features, including a handheld reader that is perfect for merchants whose business extends to a physical location. ProPay charges 3.25 percent plus $0.35 per transaction.

BluePay is a popular, full-featured payment processing service for merchants. The only issue with BluePay is that it tends to be a little expensive, and it requires a three-year commitment. However, the individual attention you get at BluePay is superb, and some businesses are willing to pay for that. The cost of the service is a $49 setup fee and 4.95 percent plus $0.40 per transaction.

CCBill is similar to CCNow but on an even larger scale. CCBill is particularly impressive if a site requires custom, enterprise-level solutions. Otherwise, it may be overkill. Also, the service is expensive. Although it varies per client, it is about 14.5 percent per transaction with no flat fee.

Although not on the scale of CCBill, PayJunction is a one-stop shop for online merchants. They offer a 30-day free trial and a wide array of excellent features, including mobile services and a virtual terminal. The rate is 2.09 percent plus $0.29 per transaction.

WorldPay is a payment processing service that originated in the UK and now has a major presence in 40 countries throughout the world. WorldPay offers a wide range of services, including excellent integration with ground-based services. All WorldPay fees are established via a custom quote, but for small volume merchants, expect the fee to be about 3.5-4.5 percent plus $0.35-$0.45 per transaction.

Written by David Walsh

David Walsh is the editor in chief here at Web Hosting Search. Having been in the industry for many years now he knows pretty much everything about everything. At least that's what he keeps telling everyone at the office. So, don't hesitate to drop him a line if you've got a question - david(a)webhostingsearch.com.

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online ecommerce solutions , 12 September, 2012

Thanks for the info. I’ve been looking for this topic for quite some time, for my online store.

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